- USD/JPY extends gains above 111 handle ahead of crucial non-farm payrolls data.
- Strong US ADP employment report released in the NY session overnight strengthened the bid tone around the USD.
- The possibility of a June Fed hike is largely priced in by the markets, much will now depend on further improvements in the US economy.
- Investors keenly await US monthly jobs report, due later on Friday for further direction.
- USD/JPY finds strong support at 110.14 (200-DMA) and we see weakness only on break below.
- The pair closed above 5-DMA on Thursday after positive ADP data, scope for test of 111.81 (cloud top) and then 112.13 (20-DMA).
- Technical studies have turned slightly positive, RSI is biased higher and Stochs are showing a rollover from oversold levels.
Support levels - 111.16 (5-DMA), 110.61 (23.6% Fib), 110.30 (trendline), 110.23 (May 18 low)
Resistance levels - 111.81 (cloud top), 112, 112.13 (20-DMA)
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -46.2435 (Neutral), while Hourly JPY Spot Index was at -110.382 (Bearish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
